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Digital payments have a positive impact on all small businesses. It is a convenient tool for accepting payment that is secure, fast, lowers the cost to the company, and increases company revenue. As per a report – The Digital Payments Market is expected to grow at a CAGR of 13.5% over the forecast period 2020 to 2025. Another survey highlights that while demonetization brought digital payments into the mainstream, GST enabled it further, but it is the Covid-19 pandemic that has really accelerated it, bringing payment by a cash down by 50% in 2020.
With ease in technology, easy access to smartphones, government, and fintech firms’ innovative yet convenient tools are offering a ton of opportunities for businesses to grow faster and more efficiently with digital payments.
Our post of today helps you in knowing five reasons why digital payment would help your business. Let’s get started –
Get Paid on Time and boost your working Capital
A business owner’s routine includes – calling people to pay against the invoices. The normal cycle of any invoice payment last from 7 days to 120 days. With such a long cycle, most businesses never get paid on time, which affects their growth with a lack of transparency in working capital.
With the adoption of digital payments, your business can raise/create invoices, send them to the clients with a payment link, that a customer can pay via online mode, or also hand over cash to a collection agent. The digital payment platform also offers real-time tracking of collection, which means – you always have an eye on “how much capital you have in hand, in real-time”.
Quick Settlement and instant transfer of money into your account
Your buyer had deposited a cheque against the invoice raised by you in the bank. But, it takes its own sweet time to get into clearance and money getting credited into your account. With Digital Payments the money transfer is in real-time. Your buyer paid via his preferred choice of internet banking or UPI and money gets credited into your account instantly.
With real-time credit happening, the digital mode also helps in settling the accounts by EOD. The whole process of settling accounts by you or your accounting team can be automated with the Automated Reconciliation process, offering you the advantage of access to liquidity in real-time.
Get Data Insights and make informed decisions
- Do you know how much is the amount to be paid to your suppliers and pending with your buyers?
- How much is the labor cost you pay every year?
- How much are the charges applied by Bank for every transaction you make?
- Who are the buyers who do not pay on time?
- How many reminders [phone calls] do you make to make your buyer pay?
These all insights could be automated with the usage of Digital payments. If you are a big business or managing multiple businesses, digital payment could also aid in reconciling different ERP and Bank transactions by EOD.
Reduce Errors and Fraud
We are all bound to commit errors, so a missing “zero” while making payment or settling accounts could be painful both for you and your accounting team. That’s where digital payment steps in, an invoice is created when sent to your buyer, he just needs to click and make the payment, and no edits or add-on of data is needed. The digital signature captures the authenticity of the transaction and registers that the payment has been made.
Most the digital payment providers are ISO certified and have to follow protocols and security to keep their platforms secure. They also use intelligence in case someone is trying to access the platform or hack it. With these certifications and regulations in place, your money in digital form is really safe.
Get Mental Peace and Save Money
Chasing for payments, going to the bank, and getting an update from the collection agent could be stressful and involves money. Using your smartphone or computer to send and receive money would not only offer convenience but peace of mind that you have things in control.
Hylobiz is a Digital-first platform for all your Offline and Online Payments
Hylobiz is a platform that offers business owners, accountants, sales, and marketing teams a way to get paid on time. Loaded with features of seamless integration to ERPs and Banks, it could boost your business in streamlining payments and recognizing revenues.
Hylobiz automates manual processes, lowers transaction costs, and speeds up invoice collection.
Here are some of the features Hylobiz offers –
Invoice Collection – Hylobiz Receivables help you digitize your collection process. You get the power to send your invoices or pro forma to your customers with a secured payment links giving multiple payment methods to your customers to make digital payments
ERP Integration – Access your ERP with our pre-integrated ERP list with Hylobiz or just upload your invoice file to kick start your digital collections with a simple two-step process
Automated Reconciliation – Hylobiz helps you with automated reconciliations of your banking transactions. All your receivables and payables are consolidated and updated in a single report with a Unique Payment Identity Number.
Credit Card, loans, and Insurance – Get Business Credit Card, loans, and health or inventory insurance. You can also extend these benefits to your customer who pays on time.
If you want to know if Hylobiz and your company can be a perfect match, schedule a free demo today.